April 1960 - Philippine Supreme Court Decisions/Resolutions
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G.R. No. L-13667 April 29, 1960 - PRIMITIVO ANSAY, ETC., ET AL. v. BOARD OF DIRECTORS OF THE NATIONAL DEVELOPMENT CO., ET AL.
107 Phil 997:
107 Phil 997:
EN BANC
[G.R. No. L-13667. April 29, 1960.]
PRIMITIVO ANSAY, ETC., ET AL., Plaintiffs-Appellants, v. THE BOARD OF DIRECTORS OF THE NATIONAL DEVELOPMENT COMPANY, ET AL., Defendants-Appellees.
Celso A. Fernandez for Appellants.
Juan C. Jimenez for Appellees.
SYLLABUS
1. NATURAL OBLIGATIONS; ELEMENT OF; VOLUNTARY FULFILLMENT; WHEN RETENTION CAN BE ORDERED. — An element of natural obligation before it can be cognizable by the court is voluntary fulfillment by the obligor. Retention can be ordered only after there has been voluntary performance.
2. ID.; BONUS NOT DEMANDABLE AND ENFORCEABLE; EXCEPTION. — A bonus is not a demandable and enforceable obligation, except when it is made a part of the wage or salary compensation. (Philippine Education Co. v. CIR and the Union of Philippine Education Co. Employees (NLU), 92 Phil., 381; 48 Off. Gaz. 5278.) Hence, the grant thereof does not generally constitute a natural obligation on the part of the company.
2. ID.; BONUS NOT DEMANDABLE AND ENFORCEABLE; EXCEPTION. — A bonus is not a demandable and enforceable obligation, except when it is made a part of the wage or salary compensation. (Philippine Education Co. v. CIR and the Union of Philippine Education Co. Employees (NLU), 92 Phil., 381; 48 Off. Gaz. 5278.) Hence, the grant thereof does not generally constitute a natural obligation on the part of the company.
D E C I S I O N
PARAS, C.J. :
On July 25, 1956, appellants filed against appellees in the Court of First Instance of Manila a complaint praying for a 20% Christmas bonus for the years 1954 and 1955. The court a quo on appellees’ motion to dismiss, issued the following order:jgc:chanrobles.com.ph
"Considering the motion to dismiss filed on 15 August, 1956, set for this morning; considering that at the hearing thereof, only respondents appeared thru counsel and there was no appearance for the plaintiffs although the court waited for sometime for them; considering, however, that petitioners have submitted an opposition which the court will consider together with the arguments presented by respondents and the Exhibits marked and presented, namely, Exhibits 1 to 5, at the hearing of the motion to dismiss; considering that the action in brief is one to compel respondents to declare a Christmas bonus for petitioners workers in the National Development Company; considering that the Court does not see how petitioners may have a cause of action to secure such bonus because:jgc:chanrobles.com.ph
"(a) A bonus is an act of liberality and the court takes it that it is not within its judicial powers to command respondents to be liberal;
"(b) Petitioners admit that respondents are not under legal duty to give such bonus but that they had only ask that such bonus be given to them because it is a moral obligation of respondents to give that but as this Court understands, it has no power to compel a party to comply with a moral obligation (Art. 142, New Civil Code).
"IN VIEW WHEREOF, dismissed. No pronouncement as to costs."cralaw virtua1aw library
A motion for reconsideration of the afore-quoted order was denied. Hence this appeal.
Appellants contend that there exists a cause of action in their complaint because their claim rests on moral grounds or what in brief is defined by law as a natural obligation.
Since appellants admit that appellees are not under legal obligation to give such claimed bonus; that the grant arises only from a moral obligation or the natural obligation that they discussed in their brief, this Court feels it urgent to reproduce at this point, the definition and meaning of natural obligation.
Article 1423 of the New Civil Code classifies obligations into civil or natural. "Civil obligations are a right of action to compel their performance. Natural obligations, not being based on positive law but on equity and natural law, do not grant a right of action to enforce their performance, but after voluntary fulfillment by the obligor, they authorize the retention of what has been delivered or rendered by reason thereof"
It is thus readily seen that an element of natural obligation before it can be cognizable by the court is voluntary fulfillment by the obligor. Certainly retention can be ordered but only after there has been voluntary performance. But here there has been no voluntary performance. In fact, the court cannot order the performance.
At this point, we would like to reiterate what we said in the case of Philippine Education Co. v. CIR and the Union of Philippine Education Co., Employees (NUL) (92 Phil., 381; 48 Off. Gaz., 5278) —
"From the legal point of view a bonus is not a demandable and enforceable obligation. It is so when it is made a part of the wage or salary compensation."cralaw virtua1aw library
And while it is true that the subsequent case of H. E. Heacock v. National Labor Union, Et Al., 95 Phil., 553; 50 Off. Gaz., 4253, we stated that:red:chanrobles.com.ph
"Even if a bonus is not demandable for not forming part of the wage, salary or compensation of an employee, the same may nevertheless, be granted on equitable consideration as when it was given in the past, though withheld in succeeding two years from low salaried employees due to salary increases."cralaw virtua1aw library
still the facts in said Heacock case are not the same as in the instant one, and hence the ruling applied in said case cannot be considered in the present action.
Premises considered, the order appealed from is hereby affirmed, without pronouncement as to costs.
Bengzon, Padilla, Montemayor, Bautista Angelo, Labrador, Concepcion, Endencia, Barrera and Gutierrez David, JJ., concur.
"Considering the motion to dismiss filed on 15 August, 1956, set for this morning; considering that at the hearing thereof, only respondents appeared thru counsel and there was no appearance for the plaintiffs although the court waited for sometime for them; considering, however, that petitioners have submitted an opposition which the court will consider together with the arguments presented by respondents and the Exhibits marked and presented, namely, Exhibits 1 to 5, at the hearing of the motion to dismiss; considering that the action in brief is one to compel respondents to declare a Christmas bonus for petitioners workers in the National Development Company; considering that the Court does not see how petitioners may have a cause of action to secure such bonus because:jgc:chanrobles.com.ph
"(a) A bonus is an act of liberality and the court takes it that it is not within its judicial powers to command respondents to be liberal;
"(b) Petitioners admit that respondents are not under legal duty to give such bonus but that they had only ask that such bonus be given to them because it is a moral obligation of respondents to give that but as this Court understands, it has no power to compel a party to comply with a moral obligation (Art. 142, New Civil Code).
"IN VIEW WHEREOF, dismissed. No pronouncement as to costs."cralaw virtua1aw library
A motion for reconsideration of the afore-quoted order was denied. Hence this appeal.
Appellants contend that there exists a cause of action in their complaint because their claim rests on moral grounds or what in brief is defined by law as a natural obligation.
Since appellants admit that appellees are not under legal obligation to give such claimed bonus; that the grant arises only from a moral obligation or the natural obligation that they discussed in their brief, this Court feels it urgent to reproduce at this point, the definition and meaning of natural obligation.
Article 1423 of the New Civil Code classifies obligations into civil or natural. "Civil obligations are a right of action to compel their performance. Natural obligations, not being based on positive law but on equity and natural law, do not grant a right of action to enforce their performance, but after voluntary fulfillment by the obligor, they authorize the retention of what has been delivered or rendered by reason thereof"
It is thus readily seen that an element of natural obligation before it can be cognizable by the court is voluntary fulfillment by the obligor. Certainly retention can be ordered but only after there has been voluntary performance. But here there has been no voluntary performance. In fact, the court cannot order the performance.
At this point, we would like to reiterate what we said in the case of Philippine Education Co. v. CIR and the Union of Philippine Education Co., Employees (NUL) (92 Phil., 381; 48 Off. Gaz., 5278) —
"From the legal point of view a bonus is not a demandable and enforceable obligation. It is so when it is made a part of the wage or salary compensation."cralaw virtua1aw library
And while it is true that the subsequent case of H. E. Heacock v. National Labor Union, Et Al., 95 Phil., 553; 50 Off. Gaz., 4253, we stated that:red:chanrobles.com.ph
"Even if a bonus is not demandable for not forming part of the wage, salary or compensation of an employee, the same may nevertheless, be granted on equitable consideration as when it was given in the past, though withheld in succeeding two years from low salaried employees due to salary increases."cralaw virtua1aw library
still the facts in said Heacock case are not the same as in the instant one, and hence the ruling applied in said case cannot be considered in the present action.
Premises considered, the order appealed from is hereby affirmed, without pronouncement as to costs.
Bengzon, Padilla, Montemayor, Bautista Angelo, Labrador, Concepcion, Endencia, Barrera and Gutierrez David, JJ., concur.
